Dubai: Many people think that having a medical insurance is enough to provide them coverage when they fall seriously ill. Unfortunately, this is not the case, according to some financial experts, and failing to plan ahead for a major health problem can be costly.
Friends Provident International (FPI) has commissioned a research to look into the insurance trends in the UAE. Findings suggest that there is still a lot of confusion surrounding between a standard medical insurance and a critical illness policy.
Out of the more than 1,000 respondents polled for the survey, about four in ten (40 per cent) said the standard medical insurance provided by their employer offers them full coverage when they get a life-threatening illness.
Major medical conditions, such as cancer, heart attack, stroke or loss of limbs can be financially devastating. With the cost of healthcare expenses rising every year, many people end up neck-deep in debt and this is mainly because even if those who fall ill are insured, they end up paying the expenses out of their pockets.
Chris Divito, managing director for Middle East and Africa at FPI, said the results of the study is worrying, because it just shows that many residents assume that their company-sponsored insurance is sufficient enough to pay for the bill when they lose a leg or get stricken by cancer.
Divito said a health insurance is designed to cover only the medical expenses, and the amount of coverage is strictly correlated with the cost of actual medical treatment. If the policy holder needs to go into a long-term therapy or home-care services, for example, the standard insurance will not provide any coverage.
“Health insurance does not usually provide for long-term recuperation, therapy or home-care services should they be required,” Friends Provident said.
To ease the financial burden, what residents should consider is taking out another insurance policy that is intended for critical illnesses. It is an insurance on top of the normal health plan. This way, the policy holder can claim a huge lump sum when life takes an unexpected turn and they can use that money in any way they choose, depending on their particular circumstances.
“People should consider critical illness insurance as a vital addition to their mandatory health insurance – especially if they have a family who would be impacted financially if they became seriously ill,” said Divito.
“While health insurance will take care of medical bills in the short term and get you back on your feet, it will not replace earnings that may be lost as a result of a serious illness. Any long-term care or modifications that may be required to your home to help you cope with the ongoing impact of a serious illness.”
The Provident International survey, undertaken by YouGov, was conducted between August 23 and August 30, 2017.
